Strategic Planning for Small Businesses

There is a certain agility that comes with having a small business. There is limited bureaucracy, fewer hoops to jump, and quicker decision making capabilities. However, with fewer staff, people can end up wearing multiple hats and getting pulled in every direction. When this happens, it is easy to lose sight of the bigger growth picture in favor of just getting the work done. No matter your business size, you should be thinking about leveraging strategic planning for growth, and all the more so for small businesses.

Put most simply, strategic planning is a process where organizations determine their direction, set goals, and develop strategies to achieve them, while aligning everything with the organization’s mission and vision. 

Let’s talk about why to document a strategic plan, some key steps, and the pitfalls to avoid for small businesses.

Why Strategic Planning Matters for Small Businesses

An agile and actionable strategic plan sets clear goals and priorities for the growth and sustainability of the business. With a well-documented and communicated plan, there is less uncertainty about things to chase or where to focus.

Consider a small consulting firm whose biggest obstacle to business development and growth is the mindset that traps many companies: “Can we do it?” instead of “Does this drive true growth?” This “do every/anything” mindset is highly likely to dilute your energy and resources. With a documented strategy, every opportunity that comes your way can be evaluated against your growth priorities. Think of your strategic plan as a litmus test. This keeps people pointed in the right direction and allocates resources towards growth goals. 

Key Steps in the Process

1. Define your vision

Your company may already have mission and vision statements. If so, it’s always a good time to revisit the vision and make sure it aligns with the current reality. If you have never developed these statements or find that what’s said isn’t what’s real, document a vision for the end of the planning period you’re tackling. Don’t over complicate it – just think about three years down the road.

2. Do your research

Knowing the current state of your industry and your organization’s place in it is critical. In addition to market research, consider that feedback about your company is also research. Gather information from your employees and your clients to give you a clear picture. Research partners and feedback tools are invaluable – and are likely less complicated than you may think.

3. Conduct a SWOT

A SWOT can be a business consultant buzzword, yes. But it is so useful when done correctly. Knowing your strengths and weaknesses (internal) and opportunities and threats (external) can help you understand what’s holding you back and prioritize objectives for your strategic plan.

4. Develop actionable strategies

Where the rubber meets the road is in defining actionable strategic objectives. After you’ve prioritized your weakness and opportunities, getting to work on strategies to shore these up and increase sales and revenue will drive your strategy forward.

5. Monitor progress with KPIs and SMART goals

The quickest way to miss your goals is to not document them. Much like individual contributor goals, make sure you define goals for your strategic objectives. How will you know that you are successful in each year of your strategic plan?

6. Manage time, personnel, and budget

Understand that you can’t do everything in your strategic plan in year one. Manage the time and budget associated with each strategic objective as building blocks. Perhaps you have a goal to improve your brand presence. Maybe year one is establishing consistency in naming convention, identifying the best channels for spreading the word about your company, and finding a graphic designer to revise your logo. Year two then can be the logo investment and year three is a website redesign. You don’t have to – and you shouldn’t – complete everything at once.

Common Pitfalls

Too often strategic plans turn into pretty documents that just sit on a shelf. When this happens, there are a few likely reasons:

The process was overcomplicated.

Strategic planning is not a one-size-fits-all approach. Large companies will take months – sometimes upwards of a year – to document a new strategic plan. That’s likely appropriate for them. A small business should take a different approach. You can develop a solid plan with your key leaders and a strategic planning consultant who doesn’t over-engineer the effort. Sometimes a five- to ten-page document with just a handful of strategic objectives is all you need to get moving in a strategic direction.

The plan wasn’t communicated.

A strategic plan is like a stakeholder involvement plan. When people are informed, they tend to participate in driving results. Your strategic plan should be communicated with all staff and available to them to read, understand, and ask questions. They should know how they help move the organization forward and their goals should be tied to elements of the strategic plan. Communicating and cascading the plan through every layer in your organization helps it succeed.

Failing to review and adjust.

If your plan is a one-and-done and you don’t look at it again until the end of the planning period, it is destined to fail. Your plan should be a living document: revisited at least annually and updated to reflect reality. Adjusting your plan is good; putting it on a shelf is not.

Conclusion

A well-crafted strategic plan is a roadmap that keeps your business focused on growth, efficiency, and long-term success. For small businesses, the agility that comes with fewer layers of bureaucracy can be a major advantage, but only if that agility is paired with a clear strategic direction. By defining a vision, conducting research, setting actionable goals, and monitoring progress, small businesses can position themselves for sustainable success. Avoiding common pitfalls helps your strategy to remain a living, agile tool rather than an unused document. With the right approach, strategic planning can transform the way your business navigates challenges and seizes opportunities, helping you achieve meaningful and lasting growth.

Are you ready to grow? Sparkline Strategy is your partner in strategic planning. Contact us for a plan refresh or full engagement on your next strategic plan. 

Need checklists, exercise templates, and feedback framework to help you get started? Contact us today!